Reuters reports that Total Immersion marketing chief, Antoine Brachet, says that they've been working with Intel to bring AR to Intel's chipsets. Intel owns a stake in Total Immersion. According to Brachet, the chip could hit the market in two to three years.

What we are doing together with Intel is working on their chipset ... so inside the chipset you can have some AR features, like gesture recognition that can be transferred from software to hardware.

AR technology baked into a chip would mean that applications wouldn't have to include the technology for gestures recognition and the overlaying of information on images. Potentially, all an OS would need is drivers for the chipset to enjoy AR features.

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While embedded gesture recognition sounds awesome, AR-overlay technology hasn't exactly taken off with consumers. The widest, probably most useful, use of the technology is probably Yelp's Monocle feature and how often do you use that? [Reuters]